hpq - silicon...source: pv market outlook, q1 2016, bloomberg new energy finance, 18 february 2016...

HPQ - SILICONR E S O U R C E S

TSX-V:HPQ

BecomingtheWorld’sLeaderinProducingLowCostGreenSolarGradeSiliconMetal

AGM-June21,2017

Thispresenta,onincludescertain“forward-lookingstatements”

Allstatements,otherthanstatementsofhistorical fact, includedherein, including,without limita5on,

statementsregardingfutureplansandobjec5vesofthecompany,areforward-lookingstatementsthat

involvevariousrisks,assump5ons,es5matesanduncertain5es,andanyorallofthesefutureplansand

objec5ves may not be achieved. The terms SGSI, Solar Grade Silicon and Polysilicon are used

interchangeablyandrefertohighpuritysiliconusedinthesolarpanelindustry,with99.999%purity,also

referredtoas“5N”.

These statements reflect the current expecta5ons or beliefs of HPQ-Silicon Resources Inc. (“the

Company”) and are based on informa5on currently available to the Company. There can be no

assurancethatsuchstatementswillprovetobeaccurate,andactualresultsandfutureeventscoulddiffer

materiallyfromthosean5cipatedinsuchstatements.Alloftheforwardlookingstatementscontainedin

thispresenta5onarequalifiedby thesecau5onary statementsand the risk factorsdescribedabove.

Furthermore,allsuchstatementsaremadeasofthedatethispresenta5onisgiven.

AninvestmentintheCompanyisspecula5veduetothenatureoftheitsbusiness. Theabilityofthe

Companytocarryoutitsplansasdescribedinthisconfiden5alpresenta5onisdependingonobtaining

therequiredcapital.ThereisnoassurancethattheCompanywillbeabletosuccessfullyraisethecapital

requiredortocompleteeachofthegrowthini5a5vesdescribed. Investorsmustrelyupontheability,

exper5se,judgment,discre5on,integrityandgoodfaithofthemanagementandBoardoftheCompany.

DISCLAIMERSHPQ - SILICONR E S O U R C E S

JUNE2017–Page2


HPQISDEVELOPINGTHEDisrupOveTechnologyinGREENSolarGradeSiliconMetal(SoGSi)requiredtomeetthegrowingdemandforSolarEnergy

InvestmentEnvironment

JUNE2017–Page3

EachnewGWofCapacityrequires5,000tonnesofSoGSi

•  Reaching10%goalrepresent540KTPAannualdemandforSoGSi

•  Worldwideeconomicallyviablesupplycapacityisonly350KTPA

•  BuildingnewsupplyCapacityissubjecttosignificantBarrierstoEntry

•  DependingonprocessCAPEXcostfor10KTPAPlantRangefromUS$700MtoUS$1B

•  Lowmargin,CashCostbetweenUS$10KtoUS$17K,salesfromUS$13KtoUS$16K•  EnvironmentalpermiZngbarriersarehighbecauseofnastyby-products(Hydrochloricacid

(HCI)/H2/SiliconTetrachloride(SiCI4))produced

Source:CanadianSolar

HPQ - SILICONR E S O U R C E S InvestmentProposiOon

Theresultsareradicalbutthescienceissimple!JUNE2017–Page4

HPQisdevelopingthePUREVAPtmQuartzReducOonReactor(PatentPending)PresentDayProcessing-FollowedbyDownstreamManufacturing

Silica MetallurgicalGrade PolysiliconQuartz SiliconMetal Brick/Ingots Solar Solar SolarSiO2 MGSi Wafer Cell Module System

99.5%SiO2 98.5to99.5%Si 99.999%SiandHigher

Silica PolysiliconQuartz Brick/Ingots Solar Solar SolarSiO2 Wafer Cell Module System

99.5%SiO2 99.999%SiandHigher

HPQPUREVAP™QRRAimstoCombineTwoProcessandTransformQuartzDirectlytoSolarGradeSilicon

SolarGradeSiliconMetal

SGSi99.999%SiandHigher


SGSi99.999%SiandHigher

PROCESS#1Smelter

PROCESS#2Refining

PROCESS#3CrystallisaRon Step1 Step2 Step3

PROCESS#1&2PUREVAPQRR

PROCESS#3CrystallisaRon Step1 Step2 Step3

PUREVAPTMQRRisaonestepCarbothermicProcessexpectedto:•  ReduceOpexofmakingSoGSibyasmuchas80%•  ReduceCapexCostofmakingSoGSibyasmuchas95%•  ReduceCarbonFootprintrelatedtoproducingSoGSibyaminimumof75%•  Eliminate the producOon of nasty by-products (Hydrochloric acid (HCI) / H2 /Silicon

Tetrachloride(SiCI4))

ThecostcurveforSGSI(polysilicon)suggestthatlong-termsolar-gradepolysiliconpricebelow

USD15/Kgisnotfeasible.HPQandthePUREVAPTMwillchallengethat.

PolycrystallineSiliconMarket2016–2025|©AMMS|Updated:2November2016

DAQO

Elkem

OCI

HankookSilicon

GCLSiemensWackerNünchritz

WackerBurghausen

TBEA

ChinaSilicon

OthersurvivingChinesecompanies

HanwhaChemical

RECSiliconFBR

Renesola

Hemlock

TokuyamaMalaysiaPhaseII

GCLFBR

SMP

WackerTennessee

RECSilicon

Siemens

SunEdisonFBR

TokuyamaShunan,Mitsubishi,

OsakaTitanium

Est.Demand

-

5.00

10.00

15.00

20.00

25.00

- 450,000

Es,matedvariablecostincl.SG&A($/kg)

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Source:PVMarketOutlook,Q12016,BloombergNewEnergyFinance,18February2016('BNEF')

Supplycurveforpolysilicon,2016


PUREVAP™QRRPotenOalOpexRange

(CashCost)*

2016 Average Spot Price $16.92

PUREVAP™DISRUPTIVEPOTENTIALCashCostAnalysis

.

JUNE2017–Page5*PUREVAPtmcashcostses,matesweberevisedamerPilotPlantisopera,onal

PUREVAP™DISRUPTIVEPOTENTIALCapexAnalysis


FollowingPilotScaleValida,onofthePUREVAP™QRRprocess;•  Thegoalwillbetomovetoacommercialphase,withanobjec5veofbuildingcapacity

capableofproducing20,000TPYofSGSiwithin5-7years

PUREVAPTMQRRUS$18.5CapExperkgofannualcapacitymatrixatPilotPlant

phasedemonstratethedisrupOvepotenOalofthetechnology

Technologies FeedMaterial

CapableofTransforming Si02to

CapableofUpgrading MGSito

KeyCapexmatrixMinimumCapacityRequirement(MT)

CapExperKgofannualinstalledcapacity(US$/kg)

CapitalCostrequirements(US$million)

Numberofeffectivecompetitors

NEWTECHNOLOGY

SiemensHC SiemensHyperPure

FBRReactorwithSilane

SilicorAluminumSolventRefining

PUREVAPQRRR&DPilotPlant

PUREVAPQRRCommercialplant

SolarGradeSi SolarGradeSiSolarGradeSi

(4N-6N)ElectronicGradeSi

(8N-9N)SolarGradeSi

(5N-6N)SolarGradeSi

(6N-7N)1

19,000 200 10,00070(U.S.) 100(U.S.) 100(U.S.)45(China) 75(China) 75(China)455(U.S.) 650(U.S.) 650(U.S.)292(China) 488(China) 488(China)

(all$valuesinUSD)

7

6,500

35

665

EXISTINGTECHNOLOGY

18 4

4 38

HPQTECHNOLOGY

1

CapitalCostPerTechnologiesAvailableToProduceSGSiMaterial

SOURCES: SilicorMaterials PyroGenesisCanadaInc(PRAugust2,2016)

RoughOrderofMagnitudeStudybyPyroGenesis

IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015

JUNE2017–Page6

PUREVAP™TheOnlyEnvironmentallyFriendlyOpOon


JUNE2017–Page7

Debt free after gold spinout

CorporateandCapitalSummaryHPQ - SILICONR E S O U R C E S

*Independentdirectorsmayreceiveaddi,onalcompensa,onforprojectwork.

Management IndependentDirector(*)

BernardJTourillon,BAA,MBA RichardMimeau,B.Sc.Chairman,CEOandDirector Director

PatrickLevasseur PeterSmith,PhD,P.Eng.President,COOandDirector Director

NoelleDrapeau,LLL,MBA,PMP RobertRobitaille,B.A.,L.Ph.,MBACorporateSecretaryandDirector Director

FrancoisRivard DarylHodgesH.BSc,M.Sc..CFO Director

Auditors

RaymondChabotGrantThornton

TransferAgent

Computershares

Consultants

MarcelDrapeau,BA,B.Sc.Comm,LLLCompanyLawyer

MarcRicher-Laflèche,P.Geo,PhDTechnicalAdvisor(INRS-ETE)

JUNE2017–Page8

Management&Board ≈15% ≈22%(FD)KeyInvestorGroup ≈14% ≈15%(FD)Fancamp ≈3% ≈5%(FD)Institutions ≈4% ≈5%(FD)TaiwaneseGroup ≈2% ≈3%(FD)PyroGenesis ≈2% ≈2%(FD)

TOTAL ≈39% ≈51%(FD)

MajorInvestors

SharePrice(June19,2017) $0.125 Cashandequivalentinhand

52WeekLow $0.105 Cashvalueofwarrantsinthemoney

52WeekHigh $0.305 BreakdownofwarrantsOutstanding # $

$0.07StrikePriceWarrants-Dec.17 6,325,000 $442,750$0.07StrikePriceWarrants-Feb.18 1,800,000 $126,000$0.07StrikePriceWarrants-Jun.18 3,915,750 $274,103$0.07StrikePriceWarrants-Aug.18 5,959,000 $417,130$0.07StrikePriceWarrants-Dec.18 7,006,000 $490,420$0.10StrikePriceWarrants-Jul17 232,769 $23,277$0.12StrikePriceWarrants-Feb.19 4,375,000 $525,000$0.25StrikePriceWarrants-Jul.18 6,200,000 -$0.25StrikePriceWarrants-Dec.18 6,448,211 -$0.25StrikePriceWarrants-Feb.19 9,411,766 -

$0.25StrikePriceWarrants-March.19 2,488,234 -$0.30StrikePriceWarrants-Jan.20 8,000,000 -$0.30StrikePriceWarrants-Oct.18 2,840,909 -

$0.35StrikePriceWarrants-March18 1,462,500 -

$900,000

$2,298,679

SharesOutstanding: 169,469,434

Warrants: 66,465,139

MarketCapitalization(FD): $30,948,072

Options: 11,650,000

FullyDiluted: 247,584,573

MarketCapitalization: $21,183,679

HPQSiliconplanstobecomeaver,callyintegratedSiliconMetalCompany

CorporateStructureandBusinessesHPQ - SILICONR E S O U R C E S

SubsidiariesBEAUCEGOLD

FIELDSINC

QUARTZ

PROPERTIESPUREVAPQRR HPQSOLAR

BTGoldOption

andJVWith

GNH

BEAUCE

GOLD

PROJECT

RONCEVAUX

GOLD

OPTION

Quartz

Quarries

Products

HighPurity

Quartz

by-products

Metallurgical

Grade

SiliconMetal

HighPurityand

SpecialtyGrade

SiliconMetal

Solar

Grade

SiliconMetal

Polysilicon

Wafersfor

SolarCells

Purity 99.99+%SIO2

98.5%to

99.5%SI

99.6+to

99.99+%SI99.999+%SI

MarketSize≤100KMT

perYear

≥2.2Million

MTperYear

≥220KMT

perYear

≥350KMT

perYear

Average

sellingprice

inKg(USD)

>$5.00

$2.20

to

$2.60

$2.80

to

$3.75

$13.00

to

$16.00

2017,2018

development

stepsforHPQ

Exploration

worktostart,

goal

delineating

resourceson

Properties

R&Dongoing,

goalremains

validating

PurevapQRR

capacityto

produce5N+

purity

Studying

business

opportunities

ofexpanding

vertical

integration

furtherdown

thePV

manufacturing

cycle

Followinglegal

settlement,

workonthis

significanthard

rockgoldproject

re-starting.Goal

istransferring

lateratcosts+

theprojectto

BGF

Divisions

Goldassetsareintheprocesstobespun

outduring2017tounlockvalue

Ownership:100%now,20%afterspinout

Followinglabscalevalidation

confirmingcapacityoftaking98.1

SiO2feedstockandproduceHigh

PuritySi,theplansaretobuilda

pilotsystemtoconfirm

commercialscalabilityandstudy

commercialopportunitiesforthis

significantmarketsegment

HPQSiliconResourcesInc.

JUNE2017–Page9

STRATEGICDEVELOPMENTAGREEMENTWITHPYROGENESIS•  PyroGenesisisdevelopingforHPQ-Silicon’sexclusiveusethePUREVAP™QRR(PatentPending)a1Step,Clean

TechprocessformakingSGSidirectlyfromQuartz,usingaplasmasubmergedarc

•  HPQ has acquired the intellectual property rights to the PUREVAP™ QRR process and will finance thedevelopmentasitrelatesexclusivelytotheproduc5onofsiliconmetalfromquartz(*)

•  PyroGenesisisbuildingandwilloverseeproduc5onfroma200TPYSGSiR&Dpilotplant

(PressreleasesAugust2,2016,September30,2015)

*PyroGenesisretainsaroyalty-free,exclusive,irrevocableworldwidelicensetousetheprocessforpurposesotherthantheproduc5onofsiliconmetalfromquartz

HPQ - SILICONR E S O U R C E S OutsourcingR&DAndPartneringWith

TheIndustryLeader

JUNE2017–Page10

HPQ - SILICONR E S O U R C E S HPQPUREVAPTMSCALINGUP:

MakingRapidProgressProofofConceptMetallurgicalTestsProgram,Scalingupresults

Thinlayerof

materialproduced

duringfirsttests

FirstnuggetofSi(99.97%SI)

producedduringfinalproofof

concepttest(About0.1g)

ProcessCharacteriza,onTes,ngPhase,Scalingupresults

15testslater

Smallbeadproduced

duringtest#24

Seriesofchunksof99.93%Si

producedduringtest#32(8.8g)

Seriesofchunksof99.97%Si

producedduringtest#51(8.67g)

Modifica,ondonetothePUREVAPTMQRRhavemadeitpossiblefortest51toproducethesame

quan,tyofSiasintest#32,whileusingsmallerbatchsizes(55wt%less)

Thisrepresenta531%increaseinYield!

JUNE2017–Page11

MGSiliconMetal

98.0%to99.5%Si

ElectricArc

Furnace

MGSiliconMetalIsDissolvedIn

HydrochloricAcidToForm

Trichlorosilane(HSiCl3)


99.999+%Si

SIEMENSType

Reactorhave90%

MarketShare

Trichlorosilane

(HSiCl3)is

FurtherRefined


“Polysilicon”

99.999+%Si

PUREVAP™QuartzReducOonReactor

MarketSize(Ton) ≈350KTonsMarketSize(US$) ≈5BillionDemandGrowth ≈15%CAGRPrice(US$/kg) 12.80to15.67CashCost(US$/kg) 12.0to17.0CapexCost(US$/kg) 75to100

SolarGradeSIKeyMatrix(5NandHigher)

2015Data(SourcesCRU,GTW,IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015,Bloomberg)

MarketSize(Ton) ≈2.2MillionTonsMarketSize(US$) ≈6BillionDemandGrowth ≈6%CAGRPrice(US$/kg) 2.4to2.8CashCost(US$/kg) 1.75to2.25CapexCost(US$/kg) 7to14

MGSIKeyMatrix(98%to99.5%Si)

2015Data(SourcesCRU,Ferroglobe,Bloomberg,Viridis.oq,Roskill)

AProprietary(PatentPending)One-stepProcessToMakeSolarGradeSiliconMetal

“ELEGANTINITSSIMPLICITY”

PUREVAPProcessKeyWorkingMatrix

CombineMarketSize(Ton) >2.7MillionTonsCombineMarketSize(US$) >11BillionDemandGrowth >10%CAGRCashCost(US$/kg) 1.75to2.25CapexCost(US$/kg) 7(2KTPYReactor)CapexCost(US$/kg) 4(10KTPYReactor)CapexCostSourcesfromPyroGenesisCanadaRoughOrder

ofMagnitudeStudy,(CapexandOpexnumberstoberefineafterPilotPlantstartoperation)

SiO299.5%

Carbon

SiO299.5%

Coal-WoodChips

COMPARISONofTODAY’SPROCESSVs.PUREVAP™HPQ - SILICONR E S O U R C E S

JUNE2017–Page12

Phase 1: Detailed Engineering

Process Engineering

Mechanical Engineering

Electrical Engineering

Automation Engineering

Phase 2: Pilot Plant Fabrication

Equipment Sourcing

Equipment Delivery & Inspection

Fabrication, Assembly & Installation

Sep-17 Oct-17 Nov-17Task Name

Sep-16

ScheduleOct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17


DesignandPilotPlantFabricaOonSchedule

Phase3:HotcommissioningofPilotPlantschedulefromNov2017

Phase4:Tes,ngandOpera,ngPilotPlantschedulefromMarch2018

JUNE2017–Page13

PUREVAP™PILOTPLANT:CAPITALNEEDS,TIMING

Thetotalcost topurchaseandcommissionthePUREVAPTMQRRPilotPlantandrelatedIntellectualPropertyisCDN$8,260,000tobeinvestedbetween08/2016en12/2018:

•  $1,000,000forpurchaseoftherelatedIntellectualProperty(Completed)

•  $4,430,000fordesign,fabrica5on,assembly,andtes5ng($3,190,200Completed,$1,239,800byNov-2017)

•  $520,000forhotcommissioningofthepilotsystem(TobepaidFromDec-2017toFeb-2018)

•  $2,310,000fortes5ngandopera5ngthepilotsystemduring10months(TobepaidFromMarchtoDec-2018)

TheProjectedCashcalloverthenext24monthsare:

•  $1,499,800for2017,(TobepaidFromOctober2017toDecember2017)

•  $2,570,000for2018

HPQSiliconfundingadvantages:

•  Theprojectiseligibleforgovernmentfunding(ProvincialandFederal)for55%to80%ofthecost

§  DiscussionwithbothlevelsofGovernmentareongoing,approvalsareexpectedduringQ32017

•  OverCDN$2,250,000worthofwarrantsareinthemoney,majorityinfriendlyhands

•  Theacquisi5onofPUREVAPTMIntellectualpropertyopensupaddi5onalop5onsforfinancing

becauseinvestorswanttoseedirectcontroloverthekeyintellectualproperty

•  Managementisexploringseveralless–dilu5vepathsforfinancingthePilotPlant

§  Ifthesharespricesexceed$C0.40,thenoverCDN$11,2Millioncouldberaisedviawarrantexercises

•  HPQwillbeen5tledtoR&DresearchcreditsontheCDN$7,260,000investment


JUNE2017–Page14

HPQ–PUREVAP™RAWMATERIALHPQ - SILICONR E S O U R C E S

•  HPQ-SiliconisthelargestholderofHighPurityQuartzproper,esinQuebec,withover3,500Haunderclaims

•  TheRoncevauxHighPurityQuartz,withitupto3Npurity(99.9%SiO2)samplesisinhigh

demand,andhassuccessfullypassedrigoroustes5ngprotocolsofamajorsiliconmetal

producer

•  The Mar5nville High Purity Quartz is unique and rare with samples up to 4N purity

(99.99%SiO2)

INRSTest2016ResultsJUNE2017–Page15

HPQVERTICALINTEGRATIONSTRATEGY

PlansAreToEstablishHPQQuarryOpera,onsinordertomeetour

RawMaterialRequirementForFuturePUREVAP™QRRPlants.


•  For 2017, HPQ plans on developing the

RoncevauxQuartzPoten5al:

•  Keygoal,delinea,ngasignificantresource

•  A Preliminary Economic Assessment (PEA),

based on the fact that the PUREVAPTM QRR

process is the only process in theworld that

can transform 98.1% SiO2 into 99.9+% Si will

beundertakenin2018

•  Un5l its comple5on, all our financial models

will be based on purchasing the raw High

Purity Quartz required for the plants, in the

openmarketatmarketprices

•  Uponsuccessfulstartofquarryopera5onson

Roncevaux, HPQ Silicon will be a fully

integratedSiliconMetalProducer

JUNE2017–Page16

HPQ - SILICONR E S O U R C E S WhyInvestinHPQNow?

HPQIsCanada’sOnlyPublicPurePlayInvestmentIntheGrowingSolarGradeSiliconMarket

•  HPQBenchTestSuccessHaveValidatedThatWeHaveTheOnlyProcessInTheWorldThatPurifiesWhileTransformingQuartzIntoSiliconMetal

•  ProjectGraduaOngToPilotPlantPhase

HPQPUREVAP™ProprietaryDisrupOveTechnology:•  LowOpex,LowCapex,MinimalCarbonFootprintandEnvironmentallyfriendly

•  Lessthan20%oftheIndustry’scashcost,

•  5%ofIndustryCapex,and

•  Es,mated75%reduc,onincarbonfootprint

•  Nonastyby-products(Hydrochloricacid(HCI)/H2/SiliconTetrachloride(SiCI4))

•  200TPYPilotPlantalmostcompletedandtalkingtopoten,alindustrypartners

•  Theonlyonestepprocessintheworldthatcantakelowqualityfeedstock

(98.1%SiO2)andproduceHighPuritySiliconMetal(99.97%Si)

JUNE2017–Page17


PUREVAPTM“FeedstockFlexibility:AVisibleAdvantage”

LowPurityFeedstock98.14%SiO2

HighPurityFeedstock99.9+%SiO2

Appendix:SupporOngSlides(slides18-32)


LeadingResearchPaperSoGSiMarketprojecOons

JUNE2017–Page19

LowSGSi(Polysilicon)Produc,onLimi,ngPVGrowth

Source: Demand Data Installations: GTM Research, PV Pulse, January 2016 Supply Data: Competitor releases, industry analysts, REC Market Intelligence

Semi Semi Semi Semi Semi

ROW ROW ROW

China Top 3

China Top 3 China Top 3

China Top 3

China Top 3

Other China Other China Other China

Other China

Other China

41GW

59GW 64GW

78GW

0

100

200

300

400

500

2014 2015 2017 2018

Poly

silic

on (k

MT)

SG Si (Polysilicon) Supply/Demand Forecast

2016

Total SG Si Demand

(70)

(60)

(50)

(40) ROW

ROW

(30)

(20)

(10)

0

10

20 95GW

2014 2016 2017 2018

Poly

silic

on (k

MT)

SG Si (Polysilicon) Market Balance Forecast

2015

Supply Excess Supply Deficit


JUNE2017–Page20

CompeOtorsSoGSiMarketprojecOons


JUNE2017–Page21

4 © REC Silicon ASA. All rights reserved. Confidential

Very Strong Growth in PV Demand

March 16, 2017

20.0

27.331.6

38.743.7

57.7

77.3 79.382.1

90.5

97.3

0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E

GW

PV Installations by Region

Europe Africa and Middle East Americas China India Japan ROW› China still most important market, but reduced installations in coming years

› India and other emerging markets continue to grow

› Long term market outlook is increasingly geographically diversified

Results based on IHS Markit, Technology Group, PV Demand Market Tracker, Q4 2016. This data is not an endorsement of REC Silicon. Any reliance on the results are at the third party’s own risk. Visit www.technology.ihs.com for more details.



JUNE2017–Page22


PUREVAP™TheOnlyEnvironmentallyFriendlyOpOon

CarbonFootprint75%LowerThanConven,onalProcess.

ThePUREVAP™QRRprocessises5matedtogenerate14.1kgCO2eq/KgSGSi;

TheSiemensprocess(theindustrystandard)normallygenerates54.0kgCO2eq/

KgSGSiofemissions.*

•  Thisrepresents75%fewergreenhousegasemissions,whichisjus5fiedbyelimina5on

oftheemissionsemana5ngfromtheuseofchemicals,aswellas,energyconsump5on

fromtheaddi5onalpurifica5onstep.


*Source:R.Glöckner.M.deWild-Scholten.Energypayback4meandcarbonfootprintofElkemSolarsilicon.27thEuropeanPhotovoltaicSolarEnergyConferenceandExhibi5onJUNE2017–Page23

PUREVAP™EnvironmentallyCompeOOveAdvantage


China’scoalintensiveelectricitygridmeansthat

makingsiliconsolarpanelsthere‒althoughCheaper‒leavesacarbonfootprintalmosttwice

aslargeasthatmakingitinEurope.Source:StudyledbyFengqiYouatNorthwesternUniversity(NatureV510,19June2014)

Tradi5onalprocessoftransformingquartzin

solargradesiliconmetalrepresentthebiggest

contribu5ngsourcetothelifecycleofCO2

emissionsforsolarenergy

ADVANTAGEPUREVAP™GOINGFORWARD,ASMOREANDMORESOLARPRODUCERWILLBEASKTOCONSIDERTHELIFECYCLECO2FOOTPRINTOFTHEIRPROJECTS

JUNE2017–Page24

GrowthinMGSiConsump,onExpectedto

AcceleratefromHistoricalLevels

KMT

$/t

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20072008200920102011201220132014201520162017201820192020

WesternWorld China

RisingMGSiDemandExpectedtoDrivePrice

Recoveryin2017-2020

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20072008200920102011201220132014201520162017201820192020

USA Europe Source:CRU2015,Ferroglobe

Note:Siliconconsump4on,pricing,andcapacitydataarefromCRU.

Japan

HPQ - SILICONR E S O U R C E S GROWINGMETALLURGICALGRADESILICONMETALMARKET

n  MGSi2015consump5onwas2.2MillionTons;

•  >$US6billioninworldwidesales

n  Demandisexpectedtogrowat6.0%CAGRfrom2016–2020

n  CRU forecasts a 2017-2020 price recovery for MG SidrivenbyrisingMGSidemand

n  In 2015, 15%ofGlobalMGSi (98.5% Si) produc,on

was further refined to Solar Grade Si (SG Si, or

“Polysilicon”)at99.999%(5N)purity

•  350KTonsofSGSiwassoldin2015(≈$US5Billion)

n  Growthwill be largely driven by the growing demandforSolarGrade(SG)Si(Polysilicon)materialtobeusedinPhotovoltaic(PV)solarpanels

n  EachWaw(W)ofenergyproducedbyaPVsolarsystemdemands≈5grofSGSi

n  GTMResearch es5mates that Installed PV demand togrowth 15 % - 23 % annually, represen5ng about 10Gigawaw(GW)peryear

n  Significant SG Si Deficit are forecast from 2017 on asGigawaw(GW)producewithSolarpanelsincreases

JUNE2017–Page25

HPQ - SILICONR E S O U R C E S HPQPUREVAPTMQRRProcessIsDisrupOveInThe

TradiOonalSiliconMetalSpaceWithItsCapacityToTransformLowPuritySio2Into3N+Si

JUNE2017–Page26


JUNE2017–Page27

HighPuritySiCompeOtors(2017)

DATA SHEET SILICON POWDERS 2016 SILICIO FERROSOLAR

SilicioFerroSolar, S.L.

Polígono Sabón, s/n 15142 Arteixo (A Coruña) Spain Tel.:+34 981 647010 Fax: +34 981 602354

Product Data Sheet

High Purity Silicon

Silicio FerroSolar offers High Purity Silicon for different applications fields such as the ceramic industry (for example ceramic bearings or cutting tools), pyrotechnical mixes, filler for epoxy in microelectronics, sputtering targets and aesthetical applications. Our production technology allow us to offer tailored solutions for each application.

Chemical composition

2N 3N 4N Spec. Spec. Spec.

Si Content (%) >99 >99.9 >99.99

IMPURITIES (%):

Fe <0.50 <0.05 <0.005

Al <0.20 <0.01 <0.001

Ca <0.05 <0.01 <0.001

Ti <0.02 <0.005 <1ppmw

P* 5-20 ppmw 5-20 ppmw 5-20 ppmw

B* 25-35 ppmw 25-35 ppmw 25-35 ppmw

*These are the typical range values for B and P. Any target value could be produced.

**Other trace elements on request

Particle size

Sizes could be adapted to the different needs.

[email protected]


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SoGSiPuritybyProcess


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UMGSoGSiCompeOtorsProcess(Elkem-2013)


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UMGSoGSiCompeOtorsProcess(Elkem-2013)

SIMPLEPUREVAPTM1-STEPPROCESS“ELEGANTINITSSIMPLICITY”

+PlasmaArc

Silicon

Vacuum

Impuri,es

ONESTEP

QuartzReduc,onReactor

•  Quartzreduc5onwithcarbonusingplasmasubmergedarc

•  Siliconrefiningundervacuumtoremoveimpuri5es

VacuumArcFurnace

•  Reachingverylowairpressurelevel

ü  (mbar)•  Veryhightemperatureplasmaarc

ü  +3500degC•  Resul,nginvaporizedimpuri,esbefore

Sicanvaporize

ü  P,K,Mg,Zn,Ca,Mn,Pb,Al,Fe,etc


SolarGradeSiliconMetal“Polysilicon”JUNE2017–Page31

3000 Omer-Lavallée St, Suite 306 Montreal, Quebec, CANADA, H1Y 3R8 Tel: +1 514 846 3271 Fax: +1 514 372 0066

www.hpqsilicon.com

CONTACT

Bernard J. Tourillon, B.A.A, MBA Chairman and CEO [email protected] +1 514 476-2133

Patrick Levasseur President, COO and Director [email protected] +1 514 262-9289


hpq - silicon...source: pv market outlook, q1 2016, bloomberg new energy finance, 18 february 2016...

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